SUSTAINABILITY REPORT 2011 MESSAGE FROM STEVE MCCANN Welcome to Lend Lease’s 2011 Sustainability Report. Sustainability is part of how we do business at Lend Lease. Every day we consider the environmental, social, ethical and financial impacts of what we do. Safety first Operating Incident & Injury Free is the most important challenge we face, and it is essential to the ongoing success of our operations. Our Asia, EMEA and Americas businesses reported no fatalities in the 2011 financial year, however we deeply regret that one person lost his life in our Australian operations. Over the past five years, our efforts to make safety the responsibility of every individual, not only the safety teams, have resulted in improved incident frequency rates and an 80 per cent reduction in our fall of person incidents. This year, we focused on safety leadership, improving our operating disciplines and driving appropriate behaviours to embed a positive safety culture. We will continue to prioritise safety and drive uncompromising leadership through our businesses. Caring for our environment We are constantly identifying, understanding and mitigating the environmental impacts of our projects. This year we continued to invest in clean technologies, expanded our green building practices and helped lead the industry through partnerships and advocacy to generate environmental change. We are proud to be one of fourteen organisations partnering with the United States administration, under President Obama, to increase energy efficiency under the Better Buildings Challenge. In the past year, we implemented an integrated Environmental, Health and Safety (EH&S) Management System that provides us with a company-wide global framework to identify risk, manage the impact of our activities, and continuously improve our performance. We are also well advanced in integrating our new infrastructure business, where we are sharing policies, procedures and operating disciplines to share best practice in EH&S and other functions across our operations. Recognising our people All around the world, our people create, innovate and collaborate every day. We aim to attract and retain people with the right expertise and fit with our values, and provide them with work that is challenging and rewarding. As part of this approach, we have introduced a goal focused performance management system to align business and individual performance with employee rewards and recognition. We create inclusive and diverse working environments where people are respected for who they are and what they achieve, irrespective of difference. We have already reached our June 2012 gender diversity target, with 23 per cent of senior executive positions in the top four levels of management now held by women. Engaging with the community Our projects have a lasting impact on the people and places around them, so we spend a lot of time engaging with the community to drive outcomes. Proactive community relations are a hallmark of all our projects, and we also collaborate with governments, education providers and businesses to increase the flow on benefits for locals. Through Lend Lease’s Foundation, we also host programs throughout the year that provide skills, expertise and support to the local communities that we operate in. Creating Securityholder Value Our commitment to safety and sustainability will continue to underpin our activities in 2012 and beyond. With this approach, we are well on the way to becoming the leading international property and infrastructure group. Regards, Steve McCann GROUP CHIEF EXECUTIVE OFFICER & MANAGING DIRECTOR This Sustainability Report covers the 2011 financial year. 1 SUSTAINABILITY REPORT 2011 ABOUT LEND LEASE Profile Lend Lease is a leading, fully integrated international property and infrastructure group with operations in Australia, Asia, the Americas, Europe and the Middle East. We work with clients and investors on everything from funding a project right through to developing and constructing state-of-the-art buildings and infrastructure, including hospitals, roads and rail. We also create vibrant residential communities, productive workplaces and retail destinations. We can do this because Lend Lease offers the complete range of services across the property and infrastructure spectrum including development; construction; investment management; and asset & property management. Our projects span all key sectors from retail and commercial to residential and infrastructure. We’re also involved in partnerships with the public sector to deliver essential infrastructure such as hospitals and military communities through the Public Private Partnerships procurement model. Using a collaborative approach we guide clients and investors beyond just maximising value to innovative, sustainable solutions. We combine our global expertise with best practice project management and a strong understanding of local markets. We work in partnership with our clients, stakeholders and the wider community to deliver projects with the best possible outcomes for everyone. Safety First Safety is our number one priority and Lend Lease is committed to operating Incident & Injury Free. This is central to our business approach and it is embedded in all our decision-making. Sustainable Leadership Sustainability has always defined the way we do business. We consider the environmental, social, ethical and financial impacts of every decision we make. We strive to do meaningful work that protects our natural environment, supports responsible economic growth and improves the quality of people’s lives. Our Values Our values underpin the way we do business. They drive the way we engage with each other, our clients, partners and stakeholders. n Respect; n Integrity; n Innovation; n Collaboration; n Excellence; and n Trust. This Sustainability Report covers the 2011 financial year. 2 Sustainability Report » About Lend Lease VALUE CHAIN Our clients, partners and investors can choose to leverage our strengths and local expertise at one stage of the property and infrastructure spectrum from development, investment management, construction, and asset & property management, or partner with us through the complete journey. We also own and co-invest in both property and infrastructure. This Sustainability Report covers the 2011 financial year. 3 SUSTAINABILITY REPORT 2011 LEND LEASE APPROACH Our approach to sustainability supports our aim to be the leading international property and infrastructure group. We are committed to building a sustainable built environment which benefits our people, the communities in which we operate, our investors and the environment. Sustainability is at the heart of everything we do. We consider the social, environmental, ethical and financial aspects of every decision we make. We aim to protect our natural environment, while supporting responsible economic growth to improve the quality of people’s lives both now and into the future. Operate Incident & Injury Free Our vision is to operate Incident & Injury Free wherever we have a presence and we work hard to reinforce the leadership, commitment and diligence needed to identify risks and eliminate incidents across all of our operations. People are our greatest asset We are focussed on attracting and retaining the best people at every level of our business. Our aim is to develop and engage a diverse and skilled workforce and to develop leaders who will contribute to our future growth and success. Innovation is one of our core values We challenge and seek to find a better solution, think outside the box and dare to do things differently. We are innovative and creative – we don’t just do it because we did it yesterday. Creating sustainable communities We seek to engage openly and honestly with our communities; to address their concerns; to respect local laws, customs and culture; and to leave a positive legacy through integrated and sustainable development that leads to improved health, prosperity and living standards. Environmental excellence We are committed to identifying, understanding and mitigating the environmental impacts of our activities. We aim to transform the built environment – both new and existing - through green building practices, investment in clean technology and a commitment to environmental excellence. High standards of responsibility and accountability We operate to the highest corporate governance, accountability and responsibility in partnership with our stakeholders. Our culture supports entrepreneurial leadership, a rigorous approach to risk management and a strong framework for sustainable development to create lasting value for our securityholders. Working for a sustainable built environment By providing leadership, expertise and guidance on sustainable development in partnership with industry and other key stakeholders we aim to set new performance benchmarks that consider the economic, environmental and social impacts. This Sustainability Report covers the 2011 financial year. 4 SUSTAINABILITY REPORT 2011 2011 HIGHLIGHTS SUMMARY Read more in the Measuring Our Performance section. This Sustainability Report covers our performance for the 2011 financial year. In March 2011 Lend Lease acquired Valemus Australia, comprising Abigroup, Baulderstone and Conneq. The integration of this business in Australia is on-going, with performance for the Australian infrastructure business being reported from March 2011, unless stated otherwise. Safety n Almost 400 of our regional and group management team were trained